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MLS ’

I was in Panera Bread the other day for lunch and overheard a conversation from the neighboring table. One lady mentioned how she just listed her house for sale. Her friend eventually asked, “What made you go with that (real estate) company?” The lady said, “They do the most advertising in the newspaper.” Although not surprised, I did find this amusing.

Many people are still under the impression that newspaper and other forms of print advertising are effective or even necessary in the sale of a home. I can tell you with 100% certainty that print advertising is NOT necessary to sell a home.

A Good Example

One of my agents just sold this wonderful home at 5318 Avenida Del Mare on Siesta Key, Florida. We didn’t need to do any print advertising to get this home sold. This home sold for the following reasons:

We mobilized the Realtor community and made them aware of this home via the Multiple Listing Service (MLS).

We found the right asking price to get buyers interested.

The listing and selling Realtors worked diligently to get the transaction closed.

Our marketing plan was more thorough than what is listed above. However, at the end of the day the MLS, the right price and good Realtors are what got the job done.

Where Do Buyers Look For Homes?

Of course newspapers generate buyer calls and thus ultimately causes some properties to sell. However, it is probably not as much as you think.

The National Association of Realtors compiles data every year and issues a Profile of Home Buyers and Sellers. This report is recognized by most as the best compilation of data on today’s buyers and sellers because of the enormous amount of data available at NAR’s fingertips.

Today’s real estate market can be trying for even the most eager of individuals. Many people might want to avoid the additional commissions, fees, and whatnot that are involved with realtors, yet having that ominous “for sale by owner” (FSBO) sign in their yards could lead to more problems than solutions. What makes a sale more difficult when owners attempt to do it themselves?

Tricky Sales When you list a property “for sale by owner,” there is a limited pool of potential buyers. In most cases, the property won’t be showing up on the multiple listing service (MLS). Also, many people think that FSBO sellers are not always the most motivated to sell their properties, and are just putting a sign up to see if they can garner a high asking price. Many times, unfortunately, you see FSBO homes sitting on the market for an unusually long time.

Also, those selling FSBO might not have the experience of an agent in negotiating the best deal. The closing paperwork, if you have never sold a property, can be very complex and confusing. An investor, for example, usually makes the sale as stress-free as possible by handling all the paperwork, closing quickly, buying “as is,” and not charging realtor commissions.

Realtors versus Investors There are many perks to listing with a realtor. It can be a good idea if the house is in good condition, you are patient, you don’t mind paying additional realtor commissions, and you are looking for a retail price. If the house needs work, however, you are looking to sell quickly, or you don’t want to pay a hefty realtor’s commission, contacting an investor might be a better option than choosing a realtor.

An investor is a great option to get your house sold if you need to sell quickly for whatever reason (including probate, inheritance, divorce, bankruptcy, or relocation, just to name a few). Usually, when investors buy houses, they can buy them in as few as seven days, in as-is condition, and without any realtor commissions. It’s up to you to decide which of these options best serves your ultimate purpose in terms of selling your house.

The steady uptick in temperature ushers in more than just pool-side cocktails and barbeques. It’s the start of real estate season, and people are hitting the MLS and local Realtors in search of For Sale signs to lead them to their perfect home.

But before you move from hunter to homeowner, the mortgage industry must be conquered, and you’ll have to get a home loan. The good news is that interest rates on mortgages are dropping, with CNN Money reporting 15-year mortgages with an average rate of 3.11%. The bad news is there are so many loan options available, you may have a hard time figuring out which one is right for your situation.

These short questions can help point you in the right direction instead of taking a stab in the dark. If you’d rather view visuals, New American Funding created an infographic quiz that can help you find the right home loan though a series of short questions.

How’s your credit score?

More than 640: Conventional Loans are your best bet because you can take advantage of the low interest rates and flexible payments

Less Than 640: FHA Loans provide easier qualifying guidelines if you’re credit score isn’t great or you can’t afford a large down payment.

How big is the home you’re buying/refinancing?

Less than 3 bedrooms: If your home is more than $417,000, double check your county’s maximum loan limits. For a lot of house, High Balance Loans or Jumbo Loans are your best option.

3+ bedrooms: If your home is less than $417,000, you’ll fall into the amounts of FHA or Conventional Loan limits.

Would you consider yourself a risk taker?

Absolutely: Adjustable Rate Mortgages (ARMs) give you a lower interest rate for the first 3-10 years, but it will adjust based on the market so if you can stomach the fluctuations, go for it and then go skydiving.

No way: Nothing wrong with being conservative. Secure yourself with a Fixed Rate Mortgage so you know how much you’ll be paying each and every month.

I remember a lesson I learned, a long time ago, when I first learned how to ride motocross in the Southern California foothills to keep the cycle pointed straight ahead at all times. My natural reaction was to find the seemingly easiest path through the trail, bobbing and weaving to avoid any large boulders; however surprisingly this was not the correct course of action. Instead, I was advised to keep heading straight, even if a huge boulder lay dead ahead in my path. The bike and its shock absorbers would handle even the largest rocks. A terrific sense of enlightenment and freedom came over me that I remember to this day.

Occasionally, I catch myself in an avoidance mode and suspect there are many others in these tough economic times with the same strategy. Then I get back into the saddle and begin to forge straight ahead despite what the depressing news says, no matter what the source. I tell myself, “These are the days we have to dig our heels in deeper.” They say when the going gets tough, the tough get going. It’s up to us to decide our personally appropriate strategy of fight or flight.

Over the course of the past year, I found myself expanding my view of my team’s market area. This was not only by a geographic territory, but also by niche or specialty. A strategy such as this requires a non-traditional approach to staffing our team. I decided I was no longer after an agent who could simply service an area, now I was after a hybrid. Such a person may be fit to service an area but they must also have special talents. Such talents may include advanced knowledge of luxury home sales, equestrian properties, international sales, new construction, golf properties, commercial, etc, or anything else that makes them stand out from the crowd.

Mobile apps mean you’re a thumb click away from finding almost anything – even your next home. The other day I read an article about how mobile apps on your Smartphone can be used for buying a home (or just checking out a new neighborhood). These realty apps aren’t new and don‘t seem to be going away, but then I got to thinking: Do I really want a mobile app to choose my next home for me?

Deciding on where (and whether!) to buy a home is lot different than, say, trying to find where the best place in town to eat a hot dog is. Sure, you could use a mobile app to find out about a new neighborhood, but it doesn’t replace actually having a “real” real estate agent to show you around the neighborhood. That’s why new homes are usually sold offline and in person, with an agent who knows the area.

The benefits of a (real) real estate agent outweigh the realty app’s benefits every day of the week. A real estate professional agent can do more for you as a home buyer than an app that says “you are here.” What, you ask? Read on – here I’ve listed 6 benefits of using a real estate agent to help you buy your home:Continue reading this post

The term “short sale” was hardly even heard of 4 years ago. The name alone is so ironic in that it usually takes 3 months to a year to close.

Most Realtors® won’t even show them as now a days you are lucky if they close at all. They are without a doubt the most frustrating of all sales. Still I guess we will be forced to live with them until someone let’s the lawmakers know that enough is enough. We need regulations and rules. Realtors are either getting rich or running for the poor house.

Fannie Mae recently passed a regulation that prohibits banks from negotiating the buyers commission or reducing them. A small but great victory for buyer’s agents who are at the mercy of the listing agent. Most of the time they offer 2.5% – 3% and state on the MLS that if commissions are reduced they are split 50/50.

Well I guess we have to take the word of the listing agent and their escrow officers on this.

I recently had a listing agent tell me that they reduced the total commission to 3% and I was to settle for 1.5%. She then accidentally forwarded me an email from the bank negotiator, who allowed a 7% total commission. Talk about dishonesty and greed. Unfortunately it is very prevalent in this market. I did manage to get my 3% but with a lot of Broker to Broker combat.

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